Investing.com -- European real estate stocks are entering 2026 with sharply divided performance across sectors, as investors focus on balance sheets, cash flow visibility and valuation discounts after several years of higher interest rates.
A January 2026 Jefferies analysis identifies 10 sector-specific ideas across retail, logistics, healthcare, residential and alternatives, highlighting companies with measurable financial metrics and defined exposure profiles rather than broad macro themes.
Retail warehouses and shopping centres feature prominently through Unibail-Rodamco-Westfield, which Jefferies rates “buy” with a price target of €110. The group trades at a discount to reported net asset value, with 2026 dividend yield listed at 5.9% and EPRA loan-to-value at 51%, according to the report. Jefferies data show the stock down 17.7% over the past year, placing valuation at 9.7 times forward earnings.
Supermarket-focused property exposure is represented by Supermarket Income REIT, which Jefferies rates “hold” with a target price of 80 GBX. The company shows a 2026 dividend yield of 6.2% and EPRA LTV of 42.6%, with shares down 6.7% year on year. Jefferies notes stable income metrics tied to long leases but limited near-term valuation re-rating.
Self-storage is highlighted through Safestore, which Jefferies upgraded to “buy” with a price target of 875 GBX. The stock shows a 2026 dividend yield of 6.8% and EPRA LTV of 25.3%. Jefferies data show shares down 34.3% over one year, alongside reported like-for-like revenue growth of 3.3% in the most recent update.
Student housing exposure is represented by Xior, rated “buy” with a target price of €36. Jefferies lists a 2026 dividend yield of 6.2% and EPRA LTV of 47.4%, with the shares down 29.5% over the past year. The company trades at 13 times forward earnings based on Jefferies estimates.
Healthcare property appears through Primary Health Properties, which Jefferies rates “buy” with a target price of 115 GBX. The stock offers a 2026 dividend yield of 7.2%, with EPRA LTV at 54%. Jefferies data show shares down 5.1% year on year, with rental income tied to government-backed primary care leases.
Logistics exposure is led by Segro, rated “hold” with a target price of 709 GBX. Jefferies lists a 2026 dividend yield of 4.1% and EPRA LTV of 32.1%. Shares are down 21.5% over the past year, with valuation at 19.9 times forward funds from operations.
An alternative logistics name appears in CTP, which Jefferies rates “buy” with a target price of €21. The company shows a 2026 dividend yield of 3.5% and EPRA LTV of 42.8%, with shares down 12% year on year. Forward valuation stands at 20.9 times earnings, according to Jefferies data.
Office exposure is represented by Workspace Group, rated “buy” with a target price of 493 GBX. Jefferies lists a 2026 dividend yield of 7.1% and EPRA LTV of 34.4%. Shares are down 44.1% over the past year, reflecting weaker sector performance highlighted in the report’s office segment analysis.
Residential real estate is covered through Vonovia, which Jefferies rates “buy” with a target price of €50. The company shows a 2026 dividend yield of 1.25% and EPRA LTV of 45.9%. Shares are down 4% year on year, with valuation at 50 times forward earnings based on Jefferies figures.
Diversified retail and logistics exposure rounds out the list with LondonMetric Property, rated “buy” with a target price of 225 GBX. Jefferies data show a 2026 dividend yield of 6.6% and EPRA LTV of 35.8%. Shares are down 7.3% over the past year, with forward valuation at 14 times earnings.
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